The Privatization of Government-Owned Enterprises Act Article 8

Upon the date when a government-owned enterprise is privatized, the employees who are willing to be transferred shall be so transferred; provided, however, that if it is otherwise agreed upon by the new and former employers upon the time of restructuring or transferring the enterprise, such agreement shall prevail.Upon the date when a government-owned enterprise is privatized, the employees who are not willing to be transferred, or who are not transferred because of the proviso of the preceding paragraph, shall complete the severance procedures. Severance pay shall be paid to such employees and shall be calculated in accordance with the criteria for payment of pensions under the Labor Standards Act, without being subject to the restrictions of age and service seniority. An additional six-month salary at the salary rates applicable to them at the time of the privatization, and an additional one-month wage in lieu of the one month advance notice, shall be paid. To those employees to whom the provisions of the Labor Standards Act are not applicable, the foregoing may be applied mutatis mutandis.For the employees retained in employment after the privatization of a government-owned enterprise, the original enterprise may, on the date of their transfer, settle the account of their benefits with respect to their respective service seniority based on the payment criteria set forth in the preceding paragraph, but the six-month salary and the wage in lieu of the one month advance notice shall not be paid. Where any of such retained employees are laid off within five years from the date of the privatization of the government-owned enterprise, the severance pay shall be paid to employees according to the salary rate at the time of the transfer to the private owned enterprise or at the time of the employment termination, whichever is more beneficial to employees, plus a six month salary based on the employee's salary rate at the time of the transfer to the private owned enterprise and the wage in lieu of the one month advance notice.For the employees who are laid off under the preceding paragraph and who meet the retirement conditions, it shall be additionally handled according to the retirement regulations. For the employees who complete the severance procedures according to paragraph 2, or are laid off according to the preceding paragraph, should they suffer any loss of the old age pension payable to them under the civil servant insurance program or the old age benefits under the labor insurance program, their losses of such benefits shall be compensated. For the employees who are transferred to and retained by a private owned enterprise privatized from a government-owned enterprise, if they incur any loss of service seniority with respect to their insurance period originally covered under the civil servant insurance program as a result of switching their insurance enrollment to the labor insurance program, they shall be compensated mutatis mutandis. Any reduction or loss of other rights or interests which are originally available shall also be compensated.The regulations governing the compensations set forth in the preceding paragraph shall be drawn up by the competent authority in charge of the enterprises and submitted to the Executive Yuan for approval.The government shall bear the expenses required for the payment of the six-month salary and the compensation for various damages and losses payable under this Article.Those employees who have completed the procedures of severance according to paragraph 2, or have been laid off according to paragraph 3, and then are employed by other government-owned enterprises, the provisions of the six-month salary payment, the wage in lieu of one-month advance notice, and the compensation for damages and losses of rights and interests, shall no longer apply. In calculating and settling the service seniority and severance pay, the aggregate service seniority with the former and latter government-owned enterprises, which is on a two-units-for-one-year basis, shall not be longer than fifteen years.For the employees retained in employment after the privatization of a government-owned enterprise, the compulsory military service seniority shall be included; for those who were still employed on June 5, 1998, the compulsory military service seniority shall be included and settled corresponding to the settlement for the service seniority of civil servants, and the salary standard of settling the severance pay at the time of privatization shall be used as the calculation standard for supplementing the units for the compulsory military service seniority; provided, however, that at the time of privatization, if the service seniority already exceeds thirty years, the compulsory military service seniority shall not be included for calculation.